Sean Manning is CEO and Founder of Payroll Vault Franchising LLC, as well as a CPA and Thought Leader in the Financial Field.
A lot of elements go into the growth and prosperity of a business: time, effort, knowledge and money, to name a few. Many of these elements come from those who run the business and serve the customers/clients. As the founder of a payroll service franchise that specializes in serving small businesses, I can say from experience and observation that having a loyal, dedicated team for a business is a vital component of its longevity. But how does retaining employees help keep a business afloat, and how can an employer keep them satisfied?
The Cost Of Dissatisfied Employees
It probably comes as no surprise that the COVID-19 pandemic has had a huge impact on the workplace. Numerous companies had to switch to hybrid or fully remote working very quickly, and as a result, many employees found they preferred the change in work environment. When it came time to return, there was a push to retain the “new normal” of hybrid or fully remote work, something that not all companies were willing to consider.
As much as some employees have found they prefer a hybrid or fully remote work arrangement, job engagement is a bigger factor. An employee’s sense that their effort is valued and that they’re accomplishing something with their work can increase fulfillment and encourage a sense of loyalty and dedication. Feeling engaged at work is 3.8 times as influential on employee stress as their work location. In other words, while some employees might prefer to work from home, they don’t mind the trip to work if it’s to a job they feel has value.
The result of this, combined with a variety of other factors like rising costs of living and shifting priorities, has many employees feeling dissatisfied with their current jobs and checking out job listings. Gallup’s 2023 State of The Workplace report shows that 6 out of 10 surveyed employees in 2022 were engaging in “quiet quitting,” where employees don’t feel invested in their jobs and do the bare minimum to get by.
Satisfied employees are loyal employees who are much more likely to stick by the company. Some employers may think that a high turnover rate isn’t an issue if they can hire new people. However, there are downsides to refilling positions. When a long-time employee quits or retires, their employer loses the experience and familiarity that this employee brought to the company.
A new hire has to be trained, go through a learning period and get familiar with their coworkers. If it’s a position that involves direct customer service, they’ll need to get to know your customer base and develop a rapport with the regulars. A constantly shifting workforce may also lead to a staff that doesn’t develop a team spirit because their coworkers aren’t likely to stick around long, which can affect how well they work together.
Satisfaction Provides Stability
We’ve established that a loyal staff is a valuable asset, so how can an employer encourage employees to stay and feel engaged with their jobs?
• Recognize employees for their hard work and productivity.
• Research the industry average pay for various positions and stay competitive with other companies that may be hiring.
• Communicate with staff members happy to find out what they want from their jobs. From one-on-one discussions between supervisors and employees to company-wide surveys, listening to staff makes many of them feel valued and respected, even if not every request can be granted.
• Compensate staff in different ways. Benefits such as a good health care plan, use of company vehicles, and a retirement fund can encourage employees to stick with the company through the tough times.
• Look at existing staff when positions open and offer promotions to those who are interested. Career advancement matters to ambitious employees. This can encourage employees to not only stick with their company but to also go the extra mile and develop the skills that make them good candidates to become the next supervisor or whatever position is next up the company ladder for them.
• Offer training opportunities to pick up useful career skills. This can encourage ambition and show employees the company is willing to invest in their future.
• Establish perks and flexibility. This can make a company a place employees want to stick with. From hybrid or remote work options to wellness packages or fitness reimbursements, sometimes the little luxuries that take the edge off workplace stress can make all the difference to an employee.
A loyal, dedicated staff is a solid framework for building a company’s future. With an experienced team that works well together, sharing the load, mentoring newcomers and aspiring to improve themselves, a business can grow with the seeds of profits and successes and persevere through the difficult times, remaining standing when other companies fall.
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